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ACA Exemption - Affordability
The Tax Prep Dispatch, You Can't Afford to Overlook Affordability, by Brad Martin is a great article to remind you of the details of the affordability exemption to the Individual Shared Responsibility Payment.
Ladder Up has a Health Insurance Affordability Exemption Worksheet that can be used along with Colorado Tax Aide's ACA Affordability Calculator for more complex situations. You can watch the tutorial video to learn how to use the calculator.
ACA Exemption - Short Coverage Gaps
Overview: A coverage exemption (code “B”) can be claimed for the taxpayer or another member of the tax household for each month of a gap in coverage of less than 3 consecutive months.
Marketplace to Medicaid Backlog - Hardship Exemption Available
A case study from
ACA Affordability Exemption Use Cases
If the taxpayer or someone from their tax family didn't have insurance for the entire year, the tax preparer needs to determine if they can claim some sort of exemption from the health insurance mandate. To begin, determine if the uninsured person is eligible for other exemptions. (One requirement of the affordability exemption is that the person is not eligible for other exemptions.) Review the use cases below for examples of determining what type of affordability exemption each uninsured person in the household might be eligible for: household income, employer-sponsored insurance, or marketplace insurance.
Each case makes use of the ACA Exemptions Related to Income Tool which has been designed to help tax preparers with different income calculations that are necessary to determine eligibility for ACA exemptions related to income, especially the affordability exemption.